Gold Dips After Big Rally, but Sees Strong Support Above $1,200

Investing.com – Gold eased Friday on light profit-taking, a day after achieving its biggest one-day rally in two years. But support remained solid above the $1,200 level from safe-haven demand triggered by the recent weakness on Wall Street and spike in Treasury yields.

“My 35 years on the floor have seen all this before,” George Gero, analyst at the RBC Wealth Management in New York, said, referring to gold’s ability to stay above the $1,200 level despite a series of rate hikes planned by the U.S. Federal Reserve.

“Traders will look for headlines, both political and economic, for further moves as technically we need $1,235-$1,250 prices for calls to be active, or $1,180 or lower for puts to be active at next options expiration,” Gero added.

Both spot and futures prices of bullion , hitting two-month highs and gaining the most since June 2016, as slowing global growth and trade tensions combined to drive more investors away from risk.

But the snap back on Wall Street and globally on bargain hunting, as well as cashing out by some gold investors after this week’s gains, brought bullion off its highs. A stronger dollar also weighed on gold.

for December delivery settled down 0.5%, or $5.60, at $1,222 a troy ounce on the COMEX division of the New York Mercantile Exchange. For the week, the contract was up 1.7% for its largest weekly advance in almost two months.

The , which measures the greenback’s strength against a basket of six major currencies, increased by 0.26% to 94.94.

In other precious metals trading on COMEX, rose 0.1% to $14.62 a troy ounce, decreased 0.64% to $841.20 and fell 1.32% to $1,061 an ounce.

Among base metals, COMEX futures rose 0.11% to $2.806 a pound.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.